My friends, in case you choose not to dwell on tiktok/instagram/literally any form of social media and have somehow miraculously missed the trend that has taken the world by storm, so much so that even CNN and CNBC are discussing the spending habits of gen z girls, I am here to serve as your guru in all things girl math related, and unfortunately burst some bubbles and debunk some myths.
Now, don’t get me wrong, I love me some girl math, after all I am a teenage girl with a wishlist of items with prices that far outweigh my current bank account total, but I also like economics and being informed about smart ways to spend money :)
So, in this article I will be taking 4 of the most popular girl math rules and putting them to the test, using some good old economics (and common sense)
DISCLAIMER: this whole article is mainly just for funsies and is in no way meant to be a criticism on what is just an internet joke/meme designed to get some girls to giggle and be a little delulu.
1.“If I buy an item costing $100 at a 40% discount, i’m saving $40”
Many shoppers (this holiday season in particular) are feeling burdened by the current unstable situation of the economy, while still wanting to treat themselves and celebrate properly. Enter Cyber Week! Dun dun dunnnnnnn… This seems like a perfect opportunity for those shoppers awaiting the moment with the lowest prices and the highest discounts to do their buying, but in reality, due to the appearance of there being a ‘better deal’ on all their favourite products, consumers actually end up spending more money than they would otherwise. This is either because they buy in stock, to avoid having to repurchase an item at its original price, or due to the consumer buying more products in general.
2. “If I pay for it in cash, it’s free!”
I am ashamed to admit that I myself indulge in this particular notion far too often, but it really does make oneself feel better about making ‘unjustifiable’ purchases. Cash, in comparison with credit cards, doesn’t leave a paper trail and is therefore much harder to quantify (whether that is regarding increases or decreases in a total of money). Stanford analysts found that it is extremely common for Americans (not just girls) to use paying with cash as a way to forget about lavish spending; in combination with the increasing prevalence of ‘treat culture’ (spending money as a form of self-care), lets the consumer get the hit of dopamine that accompanies retail therapy while avoiding the dreaded ‘low’ of the guilt that follows.
3. “If I buy something worth $700 but wear it 7 times, then it only cost $100”
Though this theory might sound like one of the more absurd ones, it is actually based on facts. Economists call this the “cost per use” theory and describe it as a way of regarding large purchases actually shifts the focus from the emotional to the rational part of your brain, often leading to more logical decisions. This logic only applies in the case of luxury products such as jewellery and watches that hold their value over long periods of time, unlike cars or most forms of technology.
4. “If I get a refund on a purchase I made then I'm making money!”
Girl math experts argue that you are in fact richer after returning an item you have previously purchased, and if you use this ‘free money’ to buy yourself something, that something is free. The reality of this is referred to by economists as the “sunk cost” concept i.e. you are not getting that money back as profit but instead returning to the starting point. Think of your bank account total as a scale, on the left you have the current amount you possess and on the right the amount you have spent. After spending $30 on jeans the scales tip, with the left hand side lowering, and the right hand side being raised higher. After getting a refund on these jeans, the left hand side is not raised higher than it originally was, indicating an increase in money, but instead returning to its original value.
In conclusion, the girl math ideology, though fundamentally incorrect, is currently being adopted by many people around the world as they try to grapple with the increase in trends such as ‘treat culture’ and the ‘old money’ aesthetic (that both promote lavish spendings and a luxurious lifestyle), while also dealing with the realities of inflation.
In my personal opinion, I think the girl math trend is not dangerous and can be engaged with as long as you are financially savvy and aware of realities regarding money.
I hope I have made the mysteries and confuzzlements regarding this CoMpLicAtEd subject a little bit easier to understand for those non-believers and have maybe informed some girl math stans. <3
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